Europe's crisis is far from over. The recipe of austerity is simply not working. In fact, it makes matters worse for people all over the EU: lost jobs, loss of prospects for the future; there is even talk about a "lost generation" of young people.
In the eye of this storm is Germany. My country has been a profiteer of the EU and its economic freedoms. Record exports, an advantageous exchange rate with the euro enabling high volume of trade, massive capital inflows and record low interest rates.
However, the wind is noticeably freshening – first and foremost in the political heart of Germany, Berlin, with a general election looming. The storm is getting closer, exports are slowing down, financial stability is increasingly at risk and the total guarantees provided for crisis countries within the eurozone surpass Germans' wildest imaginings.
In this highly fragile situation, Angela Merkel's government is trying to run down the clock. There is more of the same irresponsible politics: playing up the populist blame-game on other governments and hiding behind the dangerously narrow definition of democracy offered by the troika of the European commission, European Central Bank and International Monetary Fund. Merkel's celebration of reduced labour costs in crisis countries is not only cynical, but also highlights a dysfunctional system of competitiveness in modern-day Europe.
We have to change course in Europe – and Germany must be the driver of progressive change. The Social Democrats in Germany (SPD) right now are working hard to win a governing majority together with the Greens. It is still an open – and tight – race. Germany's voters have the chance to decide between two very concrete alternatives: the "Merkel way" or our progressive way forward. We have a clear notion of what needs to be done in Germany – and in order to repair our common European home.
Under the current German government my country has been living off its substance, eroding its own basis of strength. Merkel's politics is mainly about doing nothing and thus not hurting anybody. But the results are high employment rates with an increasing misuse of temporary work and contract labour. Taxpayers' bailout of financial institutions is accompanied by increasing private wealth in the hands of a few. The focus on exports comes with relatively low domestic demand – Germany, hence, is relying too much on one pillar of growth. The unresolved banking crisis and global economic insecurity are accompanied by massive under-investment in core German economic sectors.
And finally: the political standstill within Chancellor Merkel's government, its refusal to govern and to frame and shape our country leads to a state of affairs where social status in our society is once again more and more a matter of one's social background – eroding the principle of equal chances for all, totally eradicating the empowering role of the educational system.
Germany needs change – for its own sake and for that of Europe. By introducing a national minimum wage of €8.50 in Germany, we will increase the incomes of almost 7 million Germans earning less than this hourly amount. This will increase the purchasing power of Germans by €19bn a year and thus increase imports from other European countries. By investing a further €20bn in education and training, we will be able to raise Germany's economy up to a genuine peak of economic success and leave behind Merkel's narrow understanding of competitiveness. By supporting working families with the best system of child care, we transform Germany into a more modern society, in which families can combine work, kids and free time in a good life balance. By investing hugely in Germany's infrastructure – broadband internet, high-speed train tracks and the energy turn-around (Energiewende) – we will inject economic dynamism and create stable expectations for business and employees alike.
By implementing European growth initiatives, investing in the future of our next generation in order to tackle youth unemployment, using the strength of the euro and reining in the speculators and real sources of the financial chaos in Europe, we will overcome the crisis together with our partner EU countries – this is the SPD way for Germany and Europe.
Our leitmotif is the "good society" in Europe. Strong, open, democratic and emancipated societies, putting financial actors in their place, improving pre-distribution, allowing for a better balance of work and family, and making it possible to live the sustainable way – this is our project for the future.
